How big is this???--Intel, RealNetworks in Web video pact
By Michael Tarsala, CBS MarketWatch
Last Update: 5:51 PM ET May 24, 2000 NewsWatch
SAN JOSE, Calif. (CBS.MW) -- RealNetworks, one of Microsoft?s key competitors in Internet audio and video software, announced a new multimedia software product Wednesday developed in collaboration with Intel.
Intel and RealNetworks (RNWK: news, msgs) made available a test version of new software that the companies say enhances the herky-jerky pictures associated with most Internet video. The software will become part of a package called RealSystem 8 software.
The software was debuted at a company event in San Jose, Calif., with director Francis Ford Coppola on-hand for a demonstration.
"We've been co-developing this with Intel for more than a year," said Ben Rotholtz, RealNetworks' media systems general manager. "This is our third-generation video with Intel (INTC: news, msgs). What we introduced today is radically different."
The software promises near-DVD quality video on the Internet when viewed at high speeds, according to RealNetworks executives. Cable modem and DSL subscribers should expect VHS-quality video when viewing pictures on the software using half the screen. Consumers whoDial-up Internet subscribers also should expect vast improvements over past technology, including past RealNetworks software versions, company executives said.
"You're getting video that's worth paying for," Rotholtz said. " It initiates a whole new wave of business models that will accelerate the mass market. There's the opportunity for pay-per-view and subscription Internet video."
The new software relates to an announcement made Monday of a new version of RealNetworks' free audio and video player dubbed Real Entertainment Center that is slated to compete with Microsoft's Windows Media Player and Apple's QuickTime.
The software combination promises to heat up the ongoing battle between Real, Microsoft (MSFT: news, msgs) and Apple in Internet audio and video software. Both Microsoft and Apple also have had recent product announcements.
"We?re all doing our best to drive innovation ... we continue to drive hard-and-fast to deliver the best-looking video," said Frank Casanova, an Apple marketing executive. Apple announced Tuesday that Kodak is putting the Apple QuickTime video file format inside of digital cameras.
As part the new RealSystems 8 software, announced new technology that aims to improve the streaming process of Internet games. The company also said it's integrating nCUBE's video-on-demand software into the software that's aimed at broadcasters. The new server-based software will be offered by the two companies, and will deliver video at speeds of at least 200 kilobits per second
In still another announcement, RealNetworks announced S3 Inc.'s (SIII: news, msgs) music download hardware called the Rio Receiver will work with RealNetworks' audio software.
It was a busy news day for Intel. The company also announced plans to invest $2 billion to expand a wafer fabrication facility, unveiled the Pentium III processor and agreed to team with Cable & Wireless HKT to provide to joint e-business offerings in Asia.
RealNetworks? shares rose 2 3/4 to 34 15/16 Wednesday.
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